Central Government Employees Express Unwillingness to Migrate to Unified Pension Scheme – Indian PSU

OPINION PIECE

An RTI reply from the Pension Fund Regulatory and Development Authority (PFRDA) dated October 22, 2025, has revealed that out of 24,66,314 Central Government employees covered under the National Pension System (NPS), only 97,094 have opted to migrate to the Unified Pension Scheme (UPS) as of October 22, 2025.

The Government had introduced the UPS as an alternative contributory pension model and has already extended the deadline for migration twice, with the latest cutoff being November 30, 2025.

In August 2024, Prime Minister Narendra Modi personally announced the Cabinet’s decision to introduce UPS, assuring that it would address long-standing demands of the Central Government employees. The announcement was made in the presence of staff leaders, who welcomed the decision and expressed gratitude to the Prime Minister. However, the All India Defence Employees Federation (AIDEF) boycotted the meeting, asserting that their demand was not for any modification in the NPS but for complete restoration of the non-contributory and statutory Old Pension Scheme (OPS).

It now appears that the majority of employees have stood by AIDEF’s stance. Despite extensive government campaigns and support for UPS from various quarters, employees have overwhelmingly rejected migration to the new scheme.

“Government should respect the employees’ verdict” — C. Srikumar

Speaking on the issue, C. Srikumar, veteran leader of Central Government employees and the only member of the Standing Committee of the National Council (JCM) from AIDEF who boycotted the Prime Minister’s meeting, said:

“The government should respect the verdict of the employees. They have clearly expressed unwillingness to move to UPS. The only just solution is to restore the Old Pension Scheme (OPS).”

RTI Findings and Key Concerns

According to the RTI data, out of approximately 35 lakh Central Government employees, including paramilitary personnel (CRPF, CISF, etc.), nearly 27 lakh employees are currently under the NPS. The Armed Forces—comprising around 12 lakh personnel—are exempted from NPS.

Employees argue that there is no significant benefit in the UPS compared to NPS. Under the UPS, pension continues to be paid from the accumulated pension wealth, but 90% of this wealth remains withheld by the government, without being returned to the employee or their dependents.

“This violates the legal principles laid down by the Supreme Court, which clearly held that pension is the property of the employee, a deferred wage, and a hard-earned right,” Srikumar added.

Key Employee Concerns and Questions

Central Government employees governed by the CCS (Conduct) Rules are required to maintain integrity and be available for government service at all times. They argue that it is, therefore, the legal and moral obligation of the Government to provide a pension without deductions from their wages.

Employees have also raised fundamental questions highlighting discrimination between different government groups:

• “We were all recruited through competitive examinations on merit — why are we denied pension?”

• “Elected representatives enjoy non-contributory pensions — why not us?”

• “Judges of the High Courts and Supreme Court receive full pensions — why not Central Government staff?”

• “Armed Forces are exempted from NPS — why are civilian employees excluded?”

So far, the Government has not provided any satisfactory response to these valid questions.

Concerns Over Employment Policies

C. Srikumar further criticized the Government’s approach toward its own workforce, stating:

“The Government is expected to be a model employer. Instead, it is increasingly adopting corporate-style practices—outsourcing, contractual hiring, fixed-term employment, and reducing manpower—while avoiding engagement with trade unions. These measures are eroding employee security and morale.”

He also highlighted issues such as privatization, banning compassionate appointments, and pushing employees of erstwhile Ordnance Factories into DPSUs, calling it an attempt to “shirk responsibility.”

“The advisors of the Government must shed their bias against their own employees and act as a responsible and model employer,” Srikumar emphasized.

Views expressed here are those of veteran trade union leader C. Srikumar, who si also the General Secretary of All India Defence Employees’ Federation.